Reddit shares jump 5.20% intraday after analyst initiates buy rating with $320 target and Morgan Stanley raises price target to $265.

Reddit (RDDT) surged 5.20% intraday as positive analyst sentiment and valuation optimism drove the rally. A new buy rating from Mark Mahaney with a $320 price target—highlighting Reddit’s 40% year-to-date gains—spurred immediate buying. Morgan Stanley also raised its target to $265 from $250, reinforcing growth expectations. Concurrently, a Simply Wall St analysis suggested the stock was 36% undervalued relative to its estimated $384 fair value, further attracting investors. These catalysts aligned with broader bullishness from Evercore, which noted untapped monetization potential. While unrelated, Reddit’s exploration of AI bot-detection tools added to the stock’s narrative as a high-growth platform. The move reflects a confluence of analyst upgrades and valuation-driven optimism.